Rivian Automotive, Inc. (NASDAQ:RIVN) investors will be delighted, with the company turning in some strong numbers with its latest results. The results were impressive, with revenues of US$1.2b exceeding analyst forecasts by 22%, and statutory losses of US$0.48 were likewise much smaller than the analysts had forecast. This is an important time for investors, as they can track a company’s performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we’ve aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Rivian Automotive after the latest results.
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Taking into account the latest results, the most recent consensus for Rivian Automotive from 26 analysts is for revenues of US$5.24b in 2025. If met, it would imply a credible 4.6% increase on its revenue over the past 12 months. Losses are supposed to decline, shrinking 15% from last year to US$2.84. Before this earnings announcement, the analysts had been modelling revenues of US$5.37b and losses of US$3.48 per share in 2025. Although the revenue estimates have fallen somewhat, Rivian Automotive’sfuture looks a little different to the past, with a favorable reduction in the loss per share forecasts in particular.
See our latest analysis for Rivian Automotive
There was no major change to the US$14.06average price target, suggesting that the adjustments to revenue and earnings are not expected to have a long-term impact on the business. There’s another way to think about price targets though, and that’s to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Rivian Automotive analyst has a price target of US$23.00 per share, while the most pessimistic values it at US$6.10. So we wouldn’t be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn’t rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Rivian Automotive’s revenue growth is expected to slow, with the forecast 6.2% annualised growth rate until the end of 2025 being well below the historical 57% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 15% per year. So it’s pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Rivian Automotive.
